A Typical Value Chain Of Exportable Commodities In Nigeria

The chart above shows the typical value chain of exportable commodities in Nigeria from the farmer that cultivates the commodities to the Importer that will utilize them as raw materials for its industry abroad.

An exporter can therefore source the commodities from farmers and LBA directly at a cheaper rate. Nevertheless, the risk of transportation and the likelihood of purchasing poor quality commodities will be borne by the exporter.

However, these risks can be lessened.  To reduce the transport risk, exporters should do a good in transit (GIT) insurance with a reputable insurance company. To minimize the risk of purchasing commodities with poor qualities, the exporter should visit the commodity markets and LBAs with the samples of commodities that meet the importers’ specifications. This is to enable them compare the commodities to be purchased with the samples before payments.